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Table of contents

The desire for food is limited in every man by the narrow capacity of the human stomach; but the desire for the conveniences and ornaments of building, dress, equipage, and household furniture, seem to have no limit or boundary.
In this unit:
To explain price & quantity…
Law of Demand
A Model: The Demand “Curve”
The Law of Demand
An Increase in Demand
Change in Quantity Demanded
Movement Along the Demand Curve vs. Shift of the Demand Curve
Shifts in Demand
Factors that Change Demand
Individual Demand vs. Market Demand
Law of Supply
The Supply Curve
A Decrease in Supply
Movement Along the Supply Curve vs. Shift of the Supply Curve
What causes a supply curve to shift?
Market Equilibrium
Market Equilibrium
Price Above Its Equilibrium Level Creates a Surplus
Price Below Its Equilibrium Level Creates a Shortage
Equilibrium and Shifts of the Demand Curve
Equilibrium and Shifts of the Supply Curve
Simultaneous Shifts of the Demand and Supply Curves
Summary of Effects
Examples of Market Changes
Restrictions on Markets
Price Floor
Price Ceilings
Quantity Controls: Quotas
In the next unit:

Author: James Luke